DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 35. Taxation Group Company 2019 2018 2019 2018 RM RM RM RM Tax expenses recognised in profit or loss Current year provision: - Malaysian income tax 196,965 5,342,704 - 95,028 - Foreign tax - 254,193 - - - Under provision in prior years 746,173 377,086 564,984 733,617 943,138 5,973,983 564,984 828,645 Deferred tax (Note 26): Origination and reversal of temporary differences (267,639) (49,788) - 3,306 Under/(Over) provision in prior years (2,384,357) 1,484,734 (25,093) (30,765) (2,651,996) 1,434,946 (25,093) (27,459) Tax expense for the the financial year (1,708,858) 7,408,929 539,891 801,186 Malaysian income tax is calculated at the statutory tax rate of 24% (2018: 24%) of the estimated assessable profit for the financial year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. A reconciliation of income tax expense applicable to (loss)/profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows: Group Company 2019 2018 2019 2018 RM RM RM RM (Loss)/Profit before tax (251,244,180) 9,734,495 (28,946,932) (5,037,546) Taxation at statutory tax rate of 24% (2018: 24%) (60,298,603) 2,336,279 (6,947,264) (1,209,011) Effects of tax rates in other countries 1,088,137 101,395 - - Income not subject to tax (112,440) (81,344) (85,099) - Expenses not deductible for tax purposes 20,614,416 3,252,747 697,443 1,307,345 Utilisation of previously unrecognised deferred tax assets (6,997,738) (1,766,214) - - Deferred tax assets not recognised 45,696,689 1,704,246 6,334,920 - (Over)/Under provision of deferred tax in prior years (2,384,357) 1,484,734 (25,093) (30,765) Under provision of income tax expense in prior years 746,173 377,086 564,984 733,617 Tax incentive (61,135) - - - Tax expense for the financial year (1,708,858) 7,408,929 539,891 801,186 The Group and the Company have the following unutilised tax losses and unabsorbed capital allowances available to carry forward to offset against future taxable profits. The said amounts are subjected to approval by the tax authorities. 06 FINANCIAL STATEMENTS DESTINI BERHAD 174